San Antonio companies land Mexico energy deals (Business Journal)
Sergio Chapa / San Antonio Business Journal
As Mexico's historic energy reforms move forward, several oil and gas companies from San Antonio are finding lucrative business deals south of the border.
During the two-day Mexico Gas Summit at the St. Anthony Hotel in downtown San Antonio, executives with several American companies shared their success and challenges in Mexico.
Low oil prices, logistical challenges and security issues put the brakes on exploration and production companies from the upstream sector heading into Mexico but midstream companies are making significant inroads with pipeline and storage terminal projects while downstream companies are finding profits by supplying gasoline, diesel and other refined products to a growing number of customers south of the border.
San Antonio-based midstream company One Cypress Energy recently landed a deal to use its Port of Brownsville terminal to supply gasoline, diesel and other refined products to customers in the Mexican border towns of Reynosa and Matamoros. Under the deal, 18-wheelers pick up refined products from the company's facility on the American side of the border and cross international bridges to deliver it to customers in Mexico.
